Strong Q2 sees Rimini Street on track for growth

Rimini Street has announced Q2 results ending 30 June 2021, showing a 17 percent year-on-year increase in quarterly revenue to $91.6m.

Rimini Street’s active client count totalled 2,645 as of 30 June 2021, a year-on-year increase of 22.5 percent, with the company’s quarterly billings at $107.3m – a rise of 44.4 percent from the previous year.

Seth A. Ravin, Rimini Street co-founder, CEO and chairman of the board, said: “For the second quarter, we executed well and remain on track to achieve our strategic growth plan of $1bn in annual revenue by 2026. We achieved record revenue of $91.6m, up 16.9 percent year over year and above the high-end of our guidance range. We also ended the quarter with strong year over year billings growth of 44.4 percent, a gross margin over 62 percent and an active client count that grew by 22.5 percent. In addition, our revenue retention rate grew to 94 percent, cross-sales continued to grow as a percent of billings and we achieved year over year billings growth in all three US regions.”

Michael L. Perica, Rimini Street CFO, said: “For the second quarter, we generated $22.7m of operating cash flow and ended with more than $110m in cash. During the quarter, we also completed a $60m buyback of Series A preferred stock. Subsequent to the second quarter, on 20 July 2021, we redeemed and retired the remaining Series A preferred stock, with the transaction funded by commercial bank financing of $90m at a rate of LIBOR + 1.75% to 2.5 percent on a five-year term loan. Accordingly, go-forward annual financing costs have been reduced by $24m compared to fiscal year 2020. Today, we are issuing guidance for the third quarter ending 30 September 2021, maintaining full year 2021 guidance and re-affirming our continued commitment to the long-term goals of increasing top-line growth, operating cash flow and profitability.”